Investment Simulator How much do I need to save to retire on $5,000 a month?
Estimate how much you need invested for $60,000 a year in retirement and what to save each month to get there.
To retire on $5,000 a month from your investments for 30 years, the retirement planner estimates you’ll need $2,064,997.16 (equivalent to $1,113,840.03 in today’s dollars). If you’re 35, already have $100,000 invested, and want to retire at 60, the estimated contribution is $2,323.90 a month.
How much money do you need to retire?
The planner works out how much you need invested when you retire to fund a set number of monthly withdrawals. This example assumes a steady 0.50% monthly return (about 6.17% a year) before and during retirement, with 2.5% annual U.S. inflation and 0% tax on gains. Income goals are in today’s U.S. dollars. Portfolio targets are in future dollars at age 60. In this example, $5,000 today becomes $9,269.72 in the first month of retirement. The Fed’s longer-run inflation goal is 2%. Federal Reserve
| Annual income from investments | Monthly income entered in the app | Portfolio for 30 years of income |
|---|---|---|
| $40,000 | $3,333.33 | $1,376,663.40 |
| $60,000 | $5,000 | $2,064,997.16 |
| $90,000 | $7,500 | $3,097,495.74 |
The planner assumes withdrawals at the start of each month and allows you to spend down the balance over those 30 years. Actual returns vary. If you plan to retire early, also run the numbers with a longer withdrawal period.
How much should I save each month?
Starting at age 35 with $100,000 invested, here’s how much you’d need to invest at the start of each month to fund $5,000 a month for 30 years. Changing the retirement age also changes the inflation-adjusted income and the target portfolio in future dollars.
| Retirement age | Years to invest | Estimated monthly contribution |
|---|---|---|
| 55 | 20 | $3,217.69 |
| 60 | 25 | $2,323.90 |
| 65 | 30 | $1,717.71 |
How does Social Security change the target?
If you expect $2,000 a month in Social Security after taxes from the start of retirement and plan to spend $5,000 a month, your portfolio needs to cover $3,000. Under the same assumptions, the portfolio target falls to $1,238,998.30. If you retire before benefits start, budget separately for the years when your portfolio covers all your expenses.
Run the same calculation in the app
See the Investment Simulator retirement planner. In the Pro planner, enter a current age of 35, a retirement age of 60, $100,000 in current assets, and $5,000 in desired monthly income. In the advanced options, set 30 years of income, a 0.50% monthly return, 2.5% annual inflation, and 0% tax on gains. Change the retirement age or income to see what happens to the monthly contribution.